Tag: loans

Education is the key to a country’s success.

If we want our country to succeed, we need to offer the best education possible. We also need to offer it at an affordable price. The following are some basic ideas of how Canada could offer post secondary education at a reasonable price and help stop the bleeding of the student loans program.  In 2015 the Government was writing off about $16 Billion in loans, that’s a huge loss not only to the Government, but also for students who find it hard to make payments and for those who can’t make payments.

 

The following is a basic list of things we could do to improve the system. This is not a fix all, but a way to start moving the ball towards a system that won’t break people who want to go to school and also will help those who can’t afford to go to school.

 

Student Loan Reform Program

  1. The Federal Government sets aside X $ and sets up a student loan system of its own.  100% of the grant system is to be used up every year. This Grant system will be funded by adding another deduction from tax payers and businesses. A payroll tax of 0.25% or $0.25 for every $100. and a business tax of 0.10%. All funds from the previous year must be used as grants and student forgiveness.
  2. Government must charge bank of Canada rates on student loans and no more.
  3. No interest accrues until the person makes an annual gross income of $25000.00, although payments are still made.
  4. As part of receiving a student loan, students must commit to having all wages garnished at a minimum of 1% , this will directly go to paying student loans. This would include any work done while going to school.
  5. Any parent, friend or family who chooses to help can also have a % of their pay directed to help reduce the burden of a specific student.
  6. For a period of 7 years, all student loan payment would be tax deductible, and would be treated the same as RRSP deductions.
  7. Student loans will be made payable via automatic deductions from work pay. Just like RRSP, CPP, Employment Insurance… Borrower will be able to increase payments by going to payroll and asking for increases in deductions.
  8. Goals will be set for loan forgiveness, students who reach a 90% grade will have  X $ of loan forgiven depending on total of funds available in the government program.
  9. All current loans would be transferred to this program.
  10. All loans would be accessible via one simple to use site.
  11. All loans payable by online banking/bill payment.
  12. Book fees need to be regulated. It seems that every year new books need to be bought at ridiculous prices. All books need to be available online, for download and price adjustments need to be made.

http://www.metronews.ca/news/canada/2015/11/02/a-by-the-numbers-look-at-what-the-federal-government-doles-out-in-student-loans.html

http://business.financialpost.com/personal-finance/young-money/what-happens-when-you-cant-pay-off-your-student-debts

http://globalnews.ca/news/2193843/canada-student-loans-program-to-ramp-up-collection-efforts-documents-show/

Dear Mr. Prime Minister Trudeau (regarding student loans)

Mr. Trudeau, do you need help with revamping Student loan rules and regulations? Here’s a little advice.

 

Hey there Mr. Trudeau, now let’s go get things done.

You’ve got a majority… yes, that means you won.

You want to change the world, come on now and let’s go

Let’s help the kids at home, you can now don’t you know.

It’s not hard to make a change, with majority

Just pretend our kids are yours, they’re priority….

 

Now we could make some changes, to those student loans

Get rid of all those losses, students wouldn’t moan… (I mean they’d still moan… just a little less)

Fancy, not losing money, every single year

Students paying back their debts, I can hear them cheer.

I know just what you’re thinking, all this can’t be done.

Let me spell it out for you, do it one by one…..

 

(Now this is just the basics, tweet me if you want specifics)

 

If you didn’t know, you give all kinds of credit,

Charity, RRSP’s, child care, you get it.  (NO, Ok so….)

RRSPs are deducted from your income,

You pay a little less tax that year, see how it’s done?

The government could give those, to those who repay.

Debt goes down, a little bit and they make headway…

 

All those kids are part of, a thing called family,

Some folks might like to help, reduce the agony.

So give them a credit, like line 349,

Charity begins at home, this should be just fine.

Make it all simple, to deduct it from our pay,

Help these kids get out of debt, don’t lead them astray.

 

There are things that you could do, to help kids do it right

Help the kids of Canada, don’t add to their plight.

With your majority, and all those brains at work,

Don’t dismiss this lyric as just some genius quirk…

Show us you care enough about the future Gen

Put your heart and soul at work, mostly just your pen….